According to the Missouri website, beginning with tax year 2016, active duty pay that is included in your Federal Adjusted Gross income may be deducted on your Missouri return.
If you are a resident of Missouri, the subtraction is available for the amount of pay received while you are active duty or participating in training, outside of Missouri. You cannot take the subtraction for income from Missouri State active duty or inactive duty training,
To claim the subtraction on your Missouri return, follow these steps in the program
- State Section
- Resident Missouri Return
- Other Deductions
- Military Income Deduction-enter amount
- Save
If you are a nonresident of Missouri, your active duty pay while earned in Missouri is not taxable on the nonresident return.
To claim the subtraction, follow these steps in the program:
- State Section
- Nonresident Missouri Return
- Subtractions from Income
- Enter Other Subtractions from Income and select type below
- Enter the active duty pay amount in the appropriate box
- Scroll Down and answer "Is other subtraction from Military Nonresident Income?
- Select "Yes"
- Save
If one spouse is a resident of Missouri and the other is not, you should file separate state returns. To do this within program, you can file the federal return and wait for the return to be accepted. Then, change the filing status for the primary taxpayer and file a separate return for the first spouse. The second spouse will need to create a new account and file a separate return in that account.
Military Retirement:
If you or your spouse received a public, private, or military pension, social security or social security disability you may enter an exemption from taxable income.
To enter the deduction, follow these steps in the program:
- State Section
- Missouri Resident Return
- Other Deductions
- Pension, Military Retirement and SSA Deduction
- Military Pension Exclusion-enter amount
- Save
Combat Pay:
Your combat pay is not included in your taxable wages on your W-2. It should be listed in Box 12 with Code Q. If your combat pay is included in your Box 1 wages on your W-2, you will need to enter a subtraction into the program to correct the income.
To enter the subtraction into your resident return, follow these steps in the program:
- State Section
- Missouri Resident Return
- Subtractions From Income
- Enter Other Subtractions from Income and select type below (enter the amount of the combat pay)
- Scroll down to 'Is other subtraction from Combat pay included in Federal AGI?' Select "Yes"
- Save
For more information, see